Consultation on simplifying the taxation of offshore interest

HM Revenue and Customs (HMRC) have issued a consultation on Simplifying the Taxation of Offshore Interest.

The consultation seeks views on difficulties arising as a result of offshore interest being reported to HMRC and to taxpayers based on calendar years, and the resulting mismatch with the UK tax year which runs from 6 April to the following 5 April. The consultation explores the issue via 15 questions, including considering the possibility of taxing UK individuals based on the offshore interest arising in the 31 December year-end which falls within each UK tax year. 

This consultation is taking place during stage 1 of the Consultation Framework Process meaning that it currently seeks views on the policy options and any suitable possible alternatives, before consulting later on specific proposals for implementation.

The ATT will be responding to the consultation by the deadline date of 22 January, and we would love to hear your views. If you have any comments in relation to the consultation then please do contact us.